Move Signals Beijing's Commitment to Undertake Financial Overhauls

BEIJING—China offered its strongest signal yet of worry over slowing growth and its commitment to financial reform, as it loosened a key control over its banks.

China's central bank said late Friday that beginning on Saturday it will scrap controls on lending interest rates and let financial institutions price loans by themselves. The move could let some borrowers tap cheaper loans at a time when China's economy threatens to slow to...